Russian Gazprom raises price of gas to Ukraine

Kiev responds by hiking pipeline transit cost

(ANSA) - Kiev, April 1 - Russian energy giant Gazprom raised
the price of gas supplies to Ukraine on Tuesday, upping economic
pressure on Kiev's fledgling government and sparking fears of a
new gas dispute between the neighbouring countries.

Miller said the "price hike was due to the inability of the
Ukrainian side to pay for debts from 2013 and realise full
payments for current deliveries".

Ukraine currently owed around $1.7 billion to Gazprom, the
chief executive added.

The previous discount had been seen by many as a sort of
'prize' for Yanukovich following his decision to scrap a deal
with the European Union in favour of closer ties with Moscow.

This decision sparked violent anti-government protests in
Kiev that led to his ouster in February and the annexation by
Russia of Ukraine's southeastern Crimea peninsular the following
month.
Kiev responded to Tuesday's price hike by raising by 10%
the cost to Russia of transporting its gas through the Ukrainian
section of pipeline to Europe.